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Affordable Entry and High Returns Fuel Tier 2 Cities: Magicbricks
Real Estate

Affordable Entry and High Returns Fuel Tier 2 Cities: Magicbricks

Magicbricks, India’s leading real estate platform, has released fresh insights highlighting a robust surge in real estate activity across North India’s Tier 2 cities—Kanpur, Lucknow, Jaipur, and Dehradun—driven by infrastructure development, employment opportunities, evolving buyer preferences, and increasing appetite for premium housing.
 
According to the platform, Kanpur recorded the highest YoY increase in property prices in North India at 24.53%, with the average rate reaching Rs 6,986 per square foot (psf). The growth has been primarily driven by increased interest in the premium housing segment. The city also saw a 29.13% YoY rise in housing demand, attributed to rapid industrialisation and improved connectivity. Professionals from textiles, manufacturing, and the education sector are increasingly investing in the city’s housing market. In terms of supply, Kanpur recorded a 4.73% YoY increase, including a 47% jump in the availability of multistorey apartments.
 
Lucknow continues to emerge as a high-growth city with a 22.61% YoY increase in property prices. Infrastructure upgrades such as the Lucknow Metro expansion, and enhanced inter-city connectivity via Agra-Lucknow and Purvanchal Expressways, have catalysed a 20.69% YoY rise in housing demand. The city also led in new supply, witnessing a 12.73% YoY growth, with multistorey apartment listings surging 65% and residential houses 27%.
 
According to the portal, Jaipur posted an 18.61% YoY increase in property prices, largely due to a 56% rise in the supply of 3BHK units, catering to a growing base of mid-to-premium homebuyers. The city recorded a 78% YoY increase in multistorey apartment listings, contributing to an overall 11.77% increase in residential supply. Jaipur also stands out as the most budget-friendly market for 1 and 2 BHK units, offering affordability in a rapidly growing urban environment.
 
Dehradun, known for its lifestyle appeal and natural surroundings, observed a 4.90% YoY price appreciation, with multistorey apartments priced highest at Rs 6,500 psf among all unit types. While the city experienced a 4.87% dip in overall residential supply, multistorey apartment listings grew 49% YoY, indicating shifting buyer interest. Dehradun also leads in supplying larger homes, with 26% of new supply in the 2,000–3,000 sq ft segment—more than any of the other cities.
 
Across these Tier 2 cities, the platform has observed that multistorey apartments are gaining traction, with average prices ranging from Rs 5,600 to Rs 6,700 psf. Over 50% of homebuyers prefer units larger than 1,250 sq ft, and units between 1,250–2,000 sq ft saw the highest demand. Lucknow and Jaipur lead in supplying spacious units in this range, while Dehradun has the highest share of even larger homes.
 
Prasun Kumar, Chief Marketing Officer, Magicbricks said,"North India’s real estate landscape is evolving rapidly. These Tier 2 cities are no longer secondary markets—they’re becoming prime investment destinations. With expanding infrastructure, increasing supply of modern housing, and rising demand from young professionals and first-time buyers, these cities are poised to play a major role in India’s real estate growth over the next decade."
 
As infrastructure continues to improve and demand remains high, these Tier 2 cities are expected to drive a significant portion of India’s residential real estate activity, offering both end-users and investors lucrative opportunities.

Magicbricks, India’s leading real estate platform, has released fresh insights highlighting a robust surge in real estate activity across North India’s Tier 2 cities—Kanpur, Lucknow, Jaipur, and Dehradun—driven by infrastructure development, employment opportunities, evolving buyer preferences, and increasing appetite for premium housing. According to the platform, Kanpur recorded the highest YoY increase in property prices in North India at 24.53%, with the average rate reaching Rs 6,986 per square foot (psf). The growth has been primarily driven by increased interest in the premium housing segment. The city also saw a 29.13% YoY rise in housing demand, attributed to rapid industrialisation and improved connectivity. Professionals from textiles, manufacturing, and the education sector are increasingly investing in the city’s housing market. In terms of supply, Kanpur recorded a 4.73% YoY increase, including a 47% jump in the availability of multistorey apartments. Lucknow continues to emerge as a high-growth city with a 22.61% YoY increase in property prices. Infrastructure upgrades such as the Lucknow Metro expansion, and enhanced inter-city connectivity via Agra-Lucknow and Purvanchal Expressways, have catalysed a 20.69% YoY rise in housing demand. The city also led in new supply, witnessing a 12.73% YoY growth, with multistorey apartment listings surging 65% and residential houses 27%. According to the portal, Jaipur posted an 18.61% YoY increase in property prices, largely due to a 56% rise in the supply of 3BHK units, catering to a growing base of mid-to-premium homebuyers. The city recorded a 78% YoY increase in multistorey apartment listings, contributing to an overall 11.77% increase in residential supply. Jaipur also stands out as the most budget-friendly market for 1 and 2 BHK units, offering affordability in a rapidly growing urban environment. Dehradun, known for its lifestyle appeal and natural surroundings, observed a 4.90% YoY price appreciation, with multistorey apartments priced highest at Rs 6,500 psf among all unit types. While the city experienced a 4.87% dip in overall residential supply, multistorey apartment listings grew 49% YoY, indicating shifting buyer interest. Dehradun also leads in supplying larger homes, with 26% of new supply in the 2,000–3,000 sq ft segment—more than any of the other cities. Across these Tier 2 cities, the platform has observed that multistorey apartments are gaining traction, with average prices ranging from Rs 5,600 to Rs 6,700 psf. Over 50% of homebuyers prefer units larger than 1,250 sq ft, and units between 1,250–2,000 sq ft saw the highest demand. Lucknow and Jaipur lead in supplying spacious units in this range, while Dehradun has the highest share of even larger homes. Prasun Kumar, Chief Marketing Officer, Magicbricks said,North India’s real estate landscape is evolving rapidly. These Tier 2 cities are no longer secondary markets—they’re becoming prime investment destinations. With expanding infrastructure, increasing supply of modern housing, and rising demand from young professionals and first-time buyers, these cities are poised to play a major role in India’s real estate growth over the next decade. As infrastructure continues to improve and demand remains high, these Tier 2 cities are expected to drive a significant portion of India’s residential real estate activity, offering both end-users and investors lucrative opportunities.

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